interest rates heading up...
interest rates heading up...
It comes nine days before the next official cash rate update.
Was this expected? I feel like the RBNZ may have already indicated this rise would happen.
I recall some news article saying there was going to be one more rate hike before they start going down.
Interest that this is after the news headlines that we were the first country to reduce the OCR.
Longer term rates are still lower than short term which is quite unusual. So I guess they expect rates to come down.
Yes I'm not running from memory but I believe the RBNZ said one more rise then they will hold it for a while. So banks are anticipating that they will fall over the longer term (funny how we consider 5 years long term).
RBNZ last time (when going from 5.25% - 5.5%) they said they "had done enough"; there are no rate reductions predicted (take predictions how you will) until 2024.
I'm not sure why there has been a rate rise; when there has been no indication that there will be another rate rise. But in saying that, the economy has not cooled as much as expected.
Did they? I thought I remembered there was going to be another before the end of the year. I have had trouble finding an article though.
Normally mortgage rates are set not based on the OCR but based on the swap rate (the cost of banks lending to each other). The OCR does heavily influence the swap rate, but there can be other reasons too. I wonder if something else has happened to cause this?